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So, will the U.S. government come to the rescue? The U.S. has allowed the total federal debt to balloon by 50% since 2006, to $12.3 trillion. The chart below is a bit outdated, but it does show the reckless expansion of U.S. government debt over the past several decades.
Corporate tax revenue is way down
It is going to become even harder for the U.S. government to pay the bills now that tax receipts are falling through the floor. U.S. corporate income tax receipts were down 55% in the year that ended on September 30th, 2009.
So where do we (our government) get the money?
From the Federal Reserve of course. The Federal Reserve bought approximately 80% of all U.S. Treasury securities issued in 2009. Who bought most of the rest? The big banks who were provided with trillions of dollars worth of zero-interest or near-zero-interest loans, ostensibly so that they could loan it out to small businesses and would-be home buyers. Instead they spent some on the purchase of treasury certificates, and gambled the rest on risky investments around the world.
In other words, the U.S. government is now being financed by a massive Ponzi scheme -- it is borrowing billions from itself, paying interest to itself on the money borrowed, all the while encouraging other investors to play along with this inherently bankrupt scheme.
And oh by the way, the Federal Reserve loaned/gave to the banks a total of $23.7 TRILLION of this funny money, not just the reported $700 Billion in TARP money that Obama and the corporate news media keep talking about. http://www.youtube.com/watch?v=lDJc0PZV-Bk
Reckless inflation
The reckless expansion of the money supply by the U.S. government and the Federal Reserve is going to end up destroying both the value of the U.S. dollar as well as the remaining collective net worth of all Americans. The more dollars there are, the less each individual dollar is worth. In essence, inflation is like a hidden tax on each dollar you own. So, when our government floods the economy with money, the buying power of the money you have in your bank accounts goes down. What do you think this is going to do to the value of the U.S. dollar?
The day of reckoning is here. God bless America?
When an empire is as badly run as ours has been, there is no way it is going to be "blessed" in the long run. (God is no longer going to be able to "bless' America.) Soon enough we will be faced with an inescapable conclusion: Our empire and its poisonous fruits are about to destroy the entire fabric of our society and doom us to the same sort of irrelevance that Spain experienced by the nineteenth century. Hopefully we citizens will come to see in time that the vast wealth we expend on our permanent struggle for domination of the globe and for the enrichment of our parasitic military and executive classes, if diverted to useful investments, could make us the wealthiest and healthiest society in history. If so, we must rise up against our purblind financial elites (who are unable to even c onceive of life without the privileges of global and societal domination) before they can foreclose those options in favor of continuing the self-destructive path we are currently on. These people are quite literally insane, and we must not allow them to go on and on with no accountability whatsoever, feeding their megalomaniacal sense of entitlement with the same frenzy with which we middle-class consumaholics (those of us who haven't yet been dropped into the underclass) -- feed our seemingly bottomless gullets.
